Algae.Tec or Terravia Holdings are good, but Algae Dynamics could be even better

[USA] Algae Dynamics Corp. (OTCMKTS:ADYNF) is on the verge of standing shoulder to shoulder with Algae.Tec Ltd. (OTCMKTS:ALGXY, ASX:AEB) or Terravia Holdings Inc (NASDAQ:SZYM), boosted by a great science that applies to the cannabis market.

Are you a fan of Algae.Tec Ltd. (OTCMKTS:ALGXY, ASX:AEB) or Terravia Holdings Inc (NASDAQ:SZYM) simply because they’re focused on a very clever and effective (and environmentally-friendly) means of making biofuels and nutrition? It makes sense if you are. Terravia Holdings — formerly Solazyme — and Algae.Tec are two impressive small cap stocks in the space. For traders looking for a new name or trading idea in the space, though, add Algae Dynamics Corp. (OTCMKTS:ADYNF) to your list of great algae-based investments.

Yes, algae. It’s really quite a flexible and potent platform for doing a lot of thing. They can be food, be converted into biofuels, turned into plastic, act as fertilizer, remove CO2 from the air or water (and simultaneously put oxygen back into the environment), and create various oils that can be used for consumer uses. It’s just a matter of finding the right algae, and finding the optimal way to cultivate that algae.

Algae Dynamics is the owner of the proprietary BioSilo ™ process. BioSilo is a way of growing algae quickly and effectively…. a mix of an open-pond system and a photobioreactor, which is a light-driven approach to growing algae. It can be viewed as a “best of both worlds” approach, lowering the typical cost of algae farming, while the modular design makes it easy to maintain.

The company could go a lot of directions with the technology, Most of the tens of thousands of species of algae are rather flexible in how they can be purposed, and what they can become. Algae Dynamics is first focused on the development of two kinds of products though…. Chlorella, and Omega-3.

Chlorella is a type of microalgae that can be processed into a consumable powder by drying it until it takes a powder form, similar to coffee. Chlorella is rich in minerals, prebiotics, vitamins, and other nutritional substances. It can be added to a baked goods and a number of other products, or taken as a supplement on its own. Chlorella is used in over 1,000 products in the food and beverage markets. Algae Dynamics estimates the global Chlorella market was $210.3 million in 2014 and is expected to reach $265.5 million in 2018.

Despite a market for Chlorella in North America, there are no commercial North American producers of it.

Due to its health benefits, Omega-3 oil can be added to a very wide range of products. Consumers are increasingly aware of these benefits too, leading to substantial growth in the industry; health supplements comprise the signal largest use of Omega-3 oils in North America. The company estimates that the global market for Omega-3 oils was $14.5 billion in 2013 and is expected to reach $21.7 billion by 2019, a compound annual growth rate 7.0%.

Algae-derived Omega-3 is created by extracting the oil from the algae biomass, then separating the Omega-3 fatty acids (oil) from the algae oil.

What’s that got to do with cannabis or marijuana? Nothing. The reason ADYNF stems from the fact that some of the basic science used to extract oil from algae to make Omega-3 oils and Chlorella can also be used to make cannabis oil.

Algae Dynamics announced on December 21st that it was getting into the cannabis extract business, leveraging its existing capabilities to tap into what will be a $10 billion market by 2018. The cannabis/hemp oil market is the fastest-growing piece of the marijuana market. Its plans include submitting an application to become a producer of medical marijuana under the ACMPR and ultimately selling products derived from cannabinoids.

It’s all a very recent development; many investors may not even realize it yet. That’s not a bad thing though. In fact, that’s something of an advantage to new investors, as this new business plan may not yet be reflected in the price.

Whatever the case, Algae Dynamics just became a double-barreled opportunity, and is backed by plenty of technological know-how. Look for big things.